malvernmugadzikwa
Business Writer
The National Prosecution Authority has declined to prosecute an Israeli billionaire, Gilad Shabtai, and his co-director who were facing allegations of swindling a local company of US$1,3 million but which the prosecuting authority sees as a pure civil dispute between business partners, rather than a criminal matter.
Shabtai, along with his co-director Munyaradzi Gonyora, was facing allegations of fraud, forgery, money laundering and illegal externalisation of foreign currency.
But the NPA said the matter was a purely civil dispute borne out of boardroom squabbles with his business partner, Ofer Sivan.
“The prosecution is hereby declined. This is clearly a boardroom dispute for control of the company. The parties should resolve their dispute in the civil courts,” reads part of the document signed by acting deputy Prosecutor-Genera Justine Uladi on October 12.
Shabtai and Sivan are business partners in a joint venture company, Adelcraft (Pvt) Limited, but the deal had turned sour and now the feud is playing out in the courts.
After the NPA ruled the matter a civil dispute, the warrant of his apprehension, which had been obtained by the police against Shabtai, has since been cancelled.
Through his lawyer, Admire Rubaya, Shabtai on last Thursday applied for the warrant to be cancelled arguing that it was no longer necessary since the police and the State were no longer pursuing the matter.
In any case he argued that the warrant had been issued irregularly using a non-existing provision of the law. Magistrate Barbara Mateko, granted the application setting the two free or any fear of arrest. In her ruling, Mateko took into account that the State had conceded that the warrant of apprehension was wrongly issued and that the State had declined prosecution of the matter.
“The State has conceded to the facts and in light of the submission, the court will state that as correctly stated by counsel, the warrant was issued using a wrong section (of the law),” said Mateko. “The court has noted…and as submitted in court, the State has declined prosecution and therefore, warrant of apprehension be and is hereby cancelled.”
Shabtai and Gonyora are both non-executive directors at Adelcraft Limited. They were accused of trying to grab control of Adelcraft Ltd.
Adelcraft deals in the hiring out of heavy earth moving equipment. Over the past two decades, Shabtai has invested in world leading technology-based companies that include AquaMaof, a leading world aquaculture technology investment.
He has also invested in a US firm, Nutrifres, which is one of the largest e-commerce establishments. Shabtai constructed several luxury residential projects in Tel Aviv and his group is presently engaged in the planning and building of a major hotel and residential project in Netanya, Israel.
Bongani Ndlovu